JAKARTA - MicroStrategy, an American technology company known for its investment in Bitcoin, has again demonstrated its commitment to the crypto asset. Unmitigated, the company led by Michael Saylor bought another 1,045 Bitcoins.
In its official announcement on Tuesday, April 4, 2023, the company said it had purchased 1,053 Bitcoins for an average price of 28,016 US dollars (Rp418 million) per coin, costing 29.3 million or around Rp437 billion. This purchase adds the total amount of Bitcoin owned by MicroStrategy to 140,000 BTC.
The purchase of this latest Bitcoin is part of a MicroStrategy portfolio diversification strategy that has been started since August 2020. At the time, the company announced that Bitcoin is a major asset that will be used to store value and protect against inflation.
Since then, MicroStrategy has continued to buy Bitcoin every opportunity, even using debt. In March, the company issued $1 billion in bonds to buy Bitcoin worth 150 million US dollars (equivalent to IDR 2.2 trillion).
In addition to buying Bitcoin, MicroStrategy is also taking another important step in managing its crypto assets. The company announced that it has paid off its debt to Silvergate Bank amounting to USD 161 million (IDR 2.4 trillion) out of a total of USD 205 million (approximately IDR 3 trillion) which was borrowed in March last year.
By paying off his debt, MicroStrategy regained 34,619 Bitcoins as collateral for the transaction. The company also confirmed that its crypto assets remained safe even though the Silvergate Bank went bankrupt.
MicroStrategy's moves show high confidence in Bitcoin as a future investment asset. However, not all investors agree with the company's strategy.
Some investors are concerned about the risks posed by Bitcoin price fluctuations and liquidity problems facing MicroStrategy. In addition, some investors also doubt whether MicroStrategy is still focused on its main business as a provider of analytic platforms and cloud solutions or not.
Brent Thill, an analyst at Jefferies, estimates that MicroStrategy could face liquidity problems in the near future as the company has too much leverage for crypto assets. However, MicroStrategy continues to stick with a bold investment strategy in crypto assets, especially Bitcoin, as an effort to reduce inflation risk and maintain its portfolio value.
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